Three ASX stocks you can fall in love with this Valentine’s Day
Valentine’s Day is fast approaching! From proposal day to chocolate day to teddy day, the whole week is all about surprising your other half with lots of love. At this time of year, stock pickers tend to gravitate toward companies that are expected to see higher revenue due to mating season activity.
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From jewelers offering some of the most sparkling jewelry to businesses offering fine Australian cuisines, let’s take a look at three ASX stocks investors could watch this Valentine’s Day week.
1. Michael Hill International Limited (ASX: MHJ)
What could be better than to offer your valentine by offering her a beautiful jewel! Sure, roses are always in style, but jewelry can up your game. Michael Hill is one such company that offers a wide range of rings, necklaces, bracelets, watches, earrings, and more. only AU$3.06 million in fiscal year 2020.
MHJ is also a dividend-paying company and paid a total of 0.033 cents per share in dividends in calendar year 2021. The stock took a slight 2.72% hit this year, closing for the last time. at AU$1.43 on February 11, 2022. However, the latest one-year return was an astonishing 113.43%.
2. Delecta Limited (ASX: downloadable content)
Delecta is basically an adult products company that sells a range of products, videos, lingerie, and more. through its online channels. The company also runs an adult telephone service and operates a chain of sex shops in Australia. However, in 2018, the company diversified its activities and made a leap into mining via the acquisition of a cobalt and copper mine in Nevada, United States.
It is a very small company, having a market capitalization of A$12.04 million. In FY21, the company managed to halve its losses to A$139,000 from a loss of around A$300,000 a year ago. DLC shares are up 10% this year, to the last closing price of AU$0.011 on February 11, 2022.
3. Angel Seafood Holdings (ASX:AS1)
A delicious seafood dinner can be the icing on the cake for you and your partner, giving your taste buds a quick surprise before the day is done. Angel Seafoods sells organic oysters in Australia and other Asian countries. The company’s increased demand for its delicious oysters grew exponentially in fiscal 2019, generating revenue of AU$4.28 million, up from AU$1.48 million a year ago.
However, due to the COVID-19 crisis, demand was hit in FY 2020 and revenue fell to A$3.77 million. Despite lower revenue, profit more than doubled to A$0.72m from A$0.31m in FY19. AS1 stock has traded flat so far this year, with the last close at AU$0.19 on February 11, 2022.
The celebration of Valentine’s Day and the entire week leading up to it has resulted in increased sales for companies trying to provide a memorable moment for the couple. However, these actions are usually trending for a short time. Therefore, investors should not get carried away and should rather weigh all the pros and cons of the fundamentals before investing in such stocks.
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